Can a lot owner request VCAT replace the committee with an administrator?
Page 10 | Tisher Liner FC Law
What to do when the developer holds more than half the lots
Page 20 | The Strata Shepherd
Exiting an embedded network if the contract is not due to expire for ten years
Page 30 | Embedded Network Arena
LookUpStrata is Australia’s Top Property Blog Dedicated to Strata Living. The site has been providing reliable strata information to lot owners, strata managers and other strata professionals since 2013.
As well as publishing legislative articles to keep their audience up to date with changes to strata, this family owned business is known for their national Q&A service that provides useful responses to lot owners and members of the strata industry. They have created a national network of leading strata specialists across Australia who assist with 100s of the LookUpStrata audiences’ queries every month.
Strata information is distributed freely to their dedicated audience of readers via regular Webinars, Magazines and Newsletters. The LookUpStrata audience also has free access to The LookUpStrata Directory, showcasing 100s of strata service professionals from across Australia. To take a look at the LookUpStrata Directory, flip to the end of this magazine.
Meet the team
Nikki began building LookUpStrata back in 2012 and officially launched the company early 2013. With a background in Information Management, LookUpStrata has helped Nikki realise her mission of providing detailed, practical, and easy to understand strata information to all Australians.
Nikki shares her time between three companies, including Tower Body Corporate, a body corporate company in SEQ. Nikki is also known for presenting regular strata webinars, where LookUpStrata hosts a strata expert to cover a specific topic and respond to audience questions.
Liza came on board in early 2020 to bring structure to LookUpStrata. She has a passion for processes, growth and education. This quickly resulted in the creation of The Strata Magazine released monthly in New South Wales and Queensland, and bi-monthly in Western Australia and Victoria. As of 2021, LookUpStrata now produce 33 state based online magazines a year.
Among other daily tasks, Liza is involved in scheduling and liaising with upcoming webinar presenters, sourcing responses to audience questions and assisting strata service professionals who are interested in growing their business.
Disclaimer:
www.lookupstrata.com.au www.lookupstrata.com.au
Liza Jovicic Sales and Content Manager
Callum
Strata
owners corporation manager place owner motion proposals on the AGM agenda? Alex
The cost of not acting
A decision to not act is still a decision, and one which has its own costs.
When discussing how to finance strata work, owners often ask how the Owners Corporation can find alignment. An inability to find alignment can lead to the delay of critical work.
A decision by the Owners Corporation to not act is still a decision, and it has costs of its own. If remediation projects are delayed – the inevitable further deterioration of the strata property will lead to extra costs. If a quote expires, you can bet the new quote will be greater.
Strata managers and the Owners Corporation often need to consider new urgent work requiring attention at the same time as existing works. Is urgent work going to be unnecessarily delayed because lack of immediate funds delays decision making?
Obtaining additional funding to that raised by levies can help owners find alignment. This is where Lannock Strata Finance can help. We provide funding that can be used across several projects, not just for a solo project, and can fund invoices for separate projects under the umbrella of a single loan.
It’s important to remember that the committee can also consider a funding mix to include money that may be in the maintenance fund. If an item needing repair is included in the maintenance fund, then it is best to use it. If the item is not in the Maintenance Fund, then the committee may need to think more critically about whether they are setting the Owners Corporation up for a bigger problem down the track by taking money out of the Maintenance Fund to pay for this project. (It is important to note that states and territories operate under slightly different legislation).
Lannock recommends the Owners Corporation should consider the following for every funding decision:
• What are the options? (Maintenance Fund, Special Levy, Strata Funding)
• Should they use one method, two methods, or all three?
• Will the special levies be hard to recoup from owners? If they are hard to recoup, should they just focus on the finance option? Or money in the bank? Will this delay the project?
• Will the price increase while trying to collect levies?
• Is there an opportunity cost to striking a special levy? Will an owner sacrifice a wedding, holiday, or retirement fund?
• Will some owners carry debt beyond ownership of their lot? (because they may have put their share on a credit card, personal loan or other forms of personal funding)
• Will some owners sell and need to reduce the sale price at settlement to account for outstanding special levies?
• What is the quickest way to show proof of funds to the contractor?
The three options that should always be considered are the Maintenance Fund, Special Levy and Strata Funding. Strata Funding can be tabled as a “contingency” at every general meeting – so the Owners Corporation has prompt access to funding should it be required.
Every option should be put to the committee at the same time, prompting the crucial questions, and inviting suppliers (funding provider, contractor, lawyers) to attend committee meetings. Placing all options on the table at the beginning of your decision-making will increase the likelihood of the Owners Corporation finding alignment.
In the best interest of passing the special resolution, it is crucial that the Owners Corporation then decides on the right funding mix and which funding provider will best support that mix.
As the pioneers of strata funding, Lannock Strata Funding supports Strata Companies making informed funding decisions and will always provide someone to speak to your Owners Corporation.
Josh Klemm Business Development Manager Victoria P 0400 006 988 E joshua@lannock.com.au W lannock.com.au
With Lannock Strata Finance, you will have a dedicated relationship manager through all stages of this decisionmaking process and through the project.
The impact of rectification works on your strata insurance premium
After building rectification works have been completed, should our strata insurance premium be reduced?
The impact of rectification works on your strata insurance premium depends on the specifics of each case.
Whether your strata insurance premium should be reduced following building rectification works is a nuanced matter, influenced by the nature and purpose of the rectification itself. Here’s how different scenarios could affect your insurance premium:
• Rectification Related to a Previous Claim: If the rectification works were undertaken in response to a claim, it’s important to recognise that your claims history, a significant factor insurers consider when determining premiums, will be affected. This could potentially lead to a premium increase due to a history of claims, reflecting a perceived higher risk. Insurers rate on a three to five year claims history so it is possible the claim can have an impact for this period of time after the initial claim lodgement.
• Rectification of Building Defects:
When rectification works address specific building defects, there’s a theoretical basis for expecting a reduction in premiums. The rationale is that fixing defects should lower the risk of future claims, thereby justifying lower premiums. However, insurers may be cautious, especially with rectification works related to significant issues like major leaks. Insurers might prefer to keep premiums or excess levels unchanged for a period (typically a year) following the rectification. This approach allows them to assess whether the rectification effectively mitigates the risk of future claims, considering that subsequent claims are not uncommon after major repairs, especially if the initial issue is not fully resolved.
Given these considerations, the impact of rectification works on your strata insurance premium is highly individualised, depending on the specifics of each case.
If an insurance broker represents your strata scheme, their role becomes crucial in navigating these complexities. A competent broker should not only advocate for the most favourable premium possible post-rectification but also explore alternative insurance providers. This proactive approach ensures that your strata scheme’s insurance coverage is appropriate and cost-effective, reflecting the reduced risk profile following successful rectification works.
Can a lot owner request VCAT replace the committee with an
administrator?
QOur committee seems to live by its own rules. Can a lot owner ask VCAT to remove this committee of three and put in an administrator?
Our committee seems to live by its own rules. I took them to VCAT about ten years ago for not making repairs and not responding to complaints about their and the manager’s lack of response. They didn’t respond to the VCAT application.
One observation by the VCAT member was that there were competency issues with the committee. Things have not changed since they repeatedly refused to discuss the VCAT findings and continued to breach model rules. The other owners do not seem interested. The cost to attend the VCAT from the UK was very high. Am I able to claim costs retrospectively? I held back previously with the thought that things would improve.
Can a lot owner ask VCAT to remove this committee of three and put in an administrator? The committee is reappointed each year due to a lack of interest from owners.
AIt will require substantial noncompliance with the obligations under the Owners Corporations Act for an administrator to be appointed.
An application for costs can be made after final orders are obtained unless the Tribunal made an order specifically about costs.
There is a general presumption that each party bear their own costs, so obtaining a costs order against an owners corporation is not a guarantee even if wholly successful in the proceeding. The Tribunal must decide whether it is fair to make an order.
As for administrator actions, it is difficult to obtain an order in circumstances where AGMs are being held and where there is an elected committee and appointed owners corporation manager. Just because a lot owner cannot get their way does not mean VCAT will interfere. It will require substantial noncompliance with the obligations under the Owners Corporations Act for an administrator to be appointed.
Your best strategy is to work on PR and get lot owners wanting to be involved and nominate for the committee. If you have a view that is not the majority view, it is up to you to get the majority on your side. Otherwise, you have to submit to the majority decisions or decide that owning a lot in an owners corporation is not for you.
VCAT should be used as a last resort due to the delays and costs of VCAT.
Phillip Leaman | Tisher Liner FC Law ocenquiry@tlfc.com.au
New committee, new goalswhat about the 10 year plan?
If the committee adopts a 10year plan and programmed maintenance, what happens if, in the future, a new committee decides on a different set of goals? Do we start over again?
There is always going to be change.
Craig Welsh:
I split the terminology. I call a 10-year plan a forecast, and annual committee decisions are the budgets. If you have expenditures like renovations planned for the next few years, and then the plumbing blocks and other unexpected maintenance items pop up, there go the upgrades. Things change and the forecast changes.
When you sit down to look at your forecast every year, you set your budget. If the two don’t align, it’s probably time to update your forecast. While they align, life is good. Your levies are still going to work, your general plans are still going to work, and you can agree and set that budget. If they don’t align, it’s time to consider your costs. You need to be able to look into the future and say, “Yes, we’re going to have the money when we need it.”
Marcus Munstermann:
There is always going to be change. Let’s look at the decision for something like retrofitting EV chargers. If the decision has been made to allocate funds, it’s budgeted in the first instance and then the next committee comes along and says they don’t want to do that, those things are in flux anyway.
While the budget says that we’re putting aside twenty thousand dollars to spend on EV charging, you still have to have a discussion, motions, quotes, all of those things come into play. That will end up driving the outcome.
QIA Group info@qiagroup.com.au
Can an owner stop paying levies if they take out their own insurance?
A new non-resident owner states that by taking out their own building insurance, they have fulfilled their requirements for insurance and are not required to pay levies. Is this correct?
I have recently taken on the self-management of our strata scheme of 19 semi-detached homes. A new non-resident owner states that by taking out their own building insurance, they have fulfilled their requirements for insurance and are not required to pay levies. Our previous owners corporation manager left us in debt, so the majority of our levy funds will have to go to the insurance renewal.
The new owner is adamant that everyone should take out their own insurance. Is this owner entitled to stop levy payments because he has arranged his own insurance?
The lot owner is still responsible for contributing to the owners corporation’s expenses, including insurance costs, even if they have their own insurance.
The lot owner cannot refuse or opt out of paying owners corporation fees or the insurance premium cost. Section 28 of the Owners Corporations Act 2006 (“Act”) states that “The owners for the time being and any purchaser in possession of, and any person entitled to receive the rents and profits from, a lot are liable to pay any outstanding fees, charge, contribution or amount owing to the owners corporation in respect of that lot.”
The simple answer to the query is that the lot owner is still responsible for contributing to the owners corporation’s expenses, including insurance costs, even if they have their own insurance. Without a valid unanimous resolution to insure separately (which may not always be feasible and depends on the plan of subdivision), the lot owner is obliged to contribute towards the owners corporation’s insurance policies, regardless of any additional insurance they may hold.
If the issue continues, the owners corporation may consider seeking further legal advice.
Who is liable if a tree on my lot damaged the common property stormwater pipe?
Who is responsible for repairs if a tree on my lot damaged the common property stormwater pipe?
A tree on my lot damaged the stormwater pipe that services all four lots. The pipe only runs through my property and common property. The damage occurred in the section of pipe on my lot. Who pays for the repairs to the damaged pipe? Who pays for the removal of the tree?
Ultimately, the liability rests with you as the owner of the tree to make good any damages.
Because the tree is located on your property, it is deemed to be private to you. Accordingly, if a tree forming part of your private property has damaged another person’s property or common property, you would be required to pay for the damage incurred. You will need to decide whether this is facilitated directly or through an insurance claim (subject to the insurer’s advice). Ultimately, the liability rests with you as the tree owner to make good any damages.
As the owner of the tree on your property, you are responsible for organising and paying for its removal.
Common or private drainpipes can run through land that is either private or common under easement provisions. This is a likely scenario in your situation, and it sounds like it is common property drainage if it services all the properties on the plan.
Joel Chamberlain | Horizon Strata Management Group joel.chamberlain@horizonstrata.com.au
READ MORE HERE
A Refreshing Approach to Strata Management
Experienced and Professional Owners Corporation Managers in Melbourne
At Horizon Strata, we make sure the job gets done properly without all the fuss.
Owners Corporation management requires expert knowledge as well as forward logical thinking to allow residents to live harmoniously, and owners to have peace of mind.
Horizon takes great pride in operating under these principles. This allows us to provide premium and transparent management for any strata-titled property.
Together with the day to day running of your Owners Corporation we provide comprehensive services which support owners through some of the most difficult & complex projects.
We are experienced in handling:
• Combustible Cladding
• Building Defects
• Financial Management
• Insurance Matters
Horizon does not take commissions or rebates from any supplier or Insurance provider. Our buildings under management range from 20 to 400 Lots so you can be assured we have the capability to manage your Owners Corporation, no matter the size.
Section 100 of the Owners Corporations Act 2006 requires any owners corporation with 10 or more lots to elect a committee at each annual general meeting.
Any lot owner or a proxy is eligible to be on the comm ittee unless at the time of the vote they are not financial.
If a committee member becomes unfinancial after being elected then the member is automatically suspended from the committee and their vote does not count whilst they are in arrears.
Subject to their financial status, a committee member remains a committee member until:
1. The member resigns in which case the committee can, under section 104, either coopt any other lot owner or proxy as a member to fill the casual vacancy or, if there remains at least 3 members, proceed without filling the vacancy;
2. They are removed at a special general meeting under section 103;
3. Replaced at an annual general meeting;
4. Removed in accordance with regulation 9 (explained below).
Regulation 9 of the Owners C orporations Regulations 2018 provides that if a member of a committee is absent from 25 per cent or more of committee meetings held within any period of 6 months without having given prior notice of, or reasonable explanation for, the member's absence to the committee, the committee may resolve that, despite section 103(5) of the Act, the member ceases to hold office as a committee member. If a member ceases to hold office because of a resolution under this regulation, a casual vacancy will occur which may be dealt with in accordance with section 104 of the Act.
So how does the election work?
Ideally elections should be held in the following manner:
1. The owners corporation should decide how many committee members it will have. No vote is required to have between 3 and 7 members. A vote is required to have between 8 and 12 members. Ideally, you have a vote to determine the maximum number of members even if less than 7.
2. Each nominee should be given an opportunity to tell lot owners why they should be elected.
3. The nominees for election should be called for and a vote taken in respect to each candidate.
4. If there are more candidates than positions then the candidates with the highest votes will be elected up to the number of committee members the OC has voted to have (or if not vote up to 7).
5. A candidate must have at least a simple majority of votes cast at the meeting to be elected. Any candidate who gets less than 50.01% of the votes is not elected.
Some misconceptions
There is no such thing as a caretaker committee and no restriction on the out going committee from taking any action it deems subject to its delegation of powers and its statutory duties under section 117 of the Owners Corporations Act 2006.
If a new committee is elected at an annual general meeting but the resolutions are interim resolutions because there was not a quorum, the old committee remain the valid committee until the resolutions become final.
Each nominee candidate must have a separate election vote.
When you have multiple owners corporations in a development each owners corporation must vote in its own committee. You cannot have the committee for OC1 being the committee for OC2, OC3 and OC4. A com mittee member must be a lot owner or proxy for a lot owner who is a member of the relevant owners corporation. It is rare that a lot will be a member of every owners corporation in a development.
Remember, each committee must have at least 3 members (being from different lots) who are actually members of the relevant owners corporation. No t all lot owners are members of every owners corporation.
Need assistance?
For expert assistance and advice about committees, holding AGMs and SGMs or having someone attend to give legal advice during the meeting contact Phillip Leaman, head of our owners corporations team at Tisher Liner FC Law.
Our Blog
Tisher Liner FC Law has extensive material on its website including a dedicated blog for those involved with Owners Corporations. To sign up to the blog, send an email to ocenquiry@tlfc.com.au with the subject “Sign me up to the blog”.
To see their other resources for Owners Corporations check out www.tlfc.com.au
Disclaimer: This article is not intended to, nor should it be relied on as a substitute for legal or other professional advice. It is a general commentary not to be relied upon without specific instructions to us and advice to you. Your needs and situation are unique, and each may yield different results.
Phillip Leaman
Principal Tisher Liner FC
Law
Email: pleaman@tlfc.com.au
Phone: +613 8600 9314
What to do when the developer holds more than half the lots
The developer holds more than half the lots in our building. This makes it very difficult to achieve outcomes in owner-occupiers’ interest. How can we get out of this situation?
I live in a 30-unit apartment complex where the developer holds 17 units and they hold the majority vote on the owners committee. There are 8 people on the owners committee. Five are held by the developer, his wife, and three proxies. This makes it very difficult to achieve outcomes that are in the interest of owner-occupiers.
Recently, the developer tried to raise a special levy to resolve an incident caused by one of his tenants. The 13 owners are not keen to pay for something they are not responsible for. The owners corporation put the special levy to a vote, and the developer won. This is most unfair. How can we get out of this situation?
Unless the developer sells more lots, your ‘faction’ will continue to get overruled by the developer.
The unfortunate reality is, unless the developer sells more lots, your ‘faction’ will continue to get overruled by the developer. Owners corporations are a democracy, and the majority rules unless an independent party (like VCAT) intervenes.
Committee members are bound by Section 117 of the Owners Corporations Act 2006 to ‘act in the interests of the owners corporation (OC)’ and ‘must not make improper use’ of their position to gain, directly or indirectly, an advantage for them or any other person.
Given that the matter has gone out to a vote of all owners, a breach of the above duties may not be relevant. There could, however, be an argument that the OC is not acting in good faith (per Section 5 of the Act) given that the majority decision made is a decision of the OC.
I can’t see a way out of this situation other than to apply to VCAT (after following the OC’s grievance procedure, which I assume won’t resolve the matter but has to be done as a formality). There will likely be a compulsory mediation before a hearing, and most of the time, issues are resolved at that point.
Whilst this suggestion might come across as litigious, the VCAT dispute resolution process is not as daunting as people think. I encourage you to obtain legal advice first to assess your likelihood of achieving the overall outcome you’re looking for and then go from there.
Callum Wilson | The Strata Shepherd info@thestratashepherd.com.au
The strata management expert guiding owners corporations towards better outcomes. SERVICES
OUR STORY
Every year, tens of thousands of strata management contracts are signed in Victoria, with millions of apartment owners putting their trust in strata management companies to manage their valuable assets
Owners corporations often find it difficult to elicit change when their strata manager isn’t meeting their expectations, which is why we have developed a range of services to help them hold their strata manager accountable for their performance
By rewarding compliant and highperforming strata managers, consumers will be better protected and overall service standards in the industry will improve
WHY CHOOSE US
We guarantee better outcomes for your owners corporation, whether that be through financial benefits, improved customer service, or stronger contract terms.
STRATA MANAGEMENT BROKERAGE
Looking for a new manager? Let us take care of the process for you, for free We will connect you with the best strata managers in Victoria, who must agree contractually to our unique customer service KPI’s
COMPLIANCE REVIEW
Strata management is a complicated profession. Engage us to review your key documents and report on whether your strata manager is fulfilling their obligations.
CONTRACT NEGOTIATION
Industry-standard contracts provide little protection to the consumer for poor customer service We know the levers that can be pulled to generate more favourable terms for your owners corporation.
Does your owners corporation manager place owner motion proposals on the AGM agenda?
Can the owners corporation manager place owner motion proposals on the AGM agenda? This would allow other owners to consider and ask questions about the proposals before the AGM.
Can the owners corporation manager place owner motion proposals on the AGM agenda? This would allow other owners to consider and ask questions about the proposals before the AGM. Motions requiring a resolution are raised in any other business, and people are asked to vote immediately. I understand that if there is a quorum, the result stands, but is there a minimum time, eg., two weeks for owners to make an informed decision?
It is best practice for all proposed resolutions to be on the agenda. However, it does not happen often.
It is best practice for all proposed resolutions to be on the agenda to allow owners time to read and think about proposals, as you have mentioned. However, it does not happen often. Regardless, even when it does, many owners do not read the AGM notice.
You are correct that if there is a quorum, the resolutions are final, and the motions become resolutions of the owners corporation. There is no minimum time for owners to decide in this scenario.
If there is no quorum, the minutes of the AGM must be sent to owners within 14 days of the meeting. The interim resolution will become final 29 days after the meeting, as long as lot owners who hold more than 25% of the total votes for all the lots affected by the owners corporation don’t petition the secretary against the resolution.
Alex Smale | Melbourne Owners Corporation Services alex@mocs.com.au
My cash settlement does not include GST
The owners corporation’s (OC) insurer offered a cash settlement for a claim on water damage to my lot. Because the OC is registered for GST, the agreed amount was paid to the OC ex GST. I paid for the repairs, not the OC. When the OC transferred the money to me, they paid me the amount ex GST. We are now in a legal battle concerning the GST amount.
The agreed cash settlement was over $100,000, so I’ve lost over $10,000.
For the GST component to be claimable, the invoice must be in the name of the owners corporation.
For an entity registered for GST, insurers can only settle the GST exclusive amount according to tax laws, as in theory, the entity can claim the GST back from the Australian Tax Office in their next tax return. This can create problems for a lot owner seeking a reimbursement where the owners corporation is GST registered, and the lot owner is not.
The OC’s insurer offered a cash settlement for a claim on water damage to my lot. The amount was paid to the OC ex GST, and this has been passed onto me. How do I recover the GST?
If you are an owner and not GST-registered, and you wish your invoice to be settled as the GST-inclusive amount, we have detailed the process we recommend below.
Ensure the repair invoice is in the name of the owners corporation and submitted to them. Despite receiving the GST-exclusive amount, the owners corporation should reimburse you the total amount, including GST. The OC will then claim the GST back on their next tax return. It is essential to note that for the GST component to be claimable, the invoice must be in the name of the owners corporation.
If you have not completed repairs, I recommend following the above process to request the GST component of your claim.
Is changing the colour of our building’s façade a significant change?
Without consultation or approval from owners, the owners corporation manager and committee are changing the colour of our building’s façade. Should this be a special resolution?
Our three-floor apartment building is neutral with brightly coloured decorative poles. Without consultation or documentation, the owners corporation manager and resident’s committee are changing the façade’s colour to black and white. Is it a ‘significant change’? Should this have been a special resolution? I purchased my apartment because of the colour of the building. I stopped the repainting from progressing, and the poles are currently undercoat white.
The Act does not explicitly define what constitutes a ‘significant alteration’, which usually means that each case will turn on its facts.
Section 52 of the Owners Corporations Act 2006 provides that an owners corporation must not make a significant alteration to the use or appearance of the common property unless:
• It is approved by a special resolution; or
• It is permitted under the maintenance plan; or
• It is agreed to under Section 53, which in turn provides for upgrading of the common property approved by special resolution; or
• It is required for safety or to prevent significant loss or damage.
We have assumed the façade is common property in answering this query.
The Act does not explicitly define what constitutes a ‘significant alteration’, which usually means that each case will turn on its own facts. However, changes that affect the appearance, use or functionality of common property, especially those that could impact property values or the enjoyment of the property by residents, are generally considered significant. Member Price analysed this term in Leonie Burke Pty Ltd v Owners Corporation 15762 (Owners Corporations) [2016] VCAT 2053 and said, ‘The word ‘significant’ is suggestive of an alteration which is important, noticeable or of consequence.’ In Leonie Burke, the construction of a new bin corral, which was much larger, more solid and more prominent than the previous structure, was considered to constitute a significant alteration.
Member Buchanan queried whether the removal and replacement of external cladding on a building constituted a significant alteration in Ubertas 505 St Kilda Road Apartments Pty Ltd v Owners Corporation PS544814U (Owners Corporations) [2020] VCAT 1416. Although the matter did not turn on this point, the Member seemed to accept the applicant’s argument
that the owners corporation’s proposed replacement panels could significantly alter the appearance of the common property, thus necessitating approval by a special resolution as required by Section 52 of the Act.
The change from a neutral façade with coloured poles to a black and white façade could be viewed as significant because the façade is a prominent aspect of the building’s appearance, is highly visible and could potentially affect the aesthetic appeal and value of the property. Further, assuming the façade is part of common property, it is important that all owners have a say in significant changes. Requiring a special resolution ensures there is a collective agreement, maintaining harmony and preventing disputes among owners.
Having said this, sometimes changes in paint colour are part of necessary maintenance or modernisation efforts. If the change is minor or for the purpose of upkeep, it might be
seen as an operational decision rather than a significant alteration, and requiring a special resolution could unnecessarily delay these essential works. It would be prudent to review the maintenance plan to see if it contemplated this change and the reasons behind it. We also recommend you access the meeting minutes to fully understand any documented discussions regarding this change, which in turn may inform your next steps.
network if the contract is not due to expire for ten years
An owners corporation would like to switch embedded network providers. Can they exit if their contract is not due to expire for ten years?
I am a strata manager. An owners corporation in our portfolio has an embedded network. The owners corporation has queried switching embedded network providers. We know the new provider needs to purchase the infrastructure. However, how does the OC get out of the contract? It is not due to expire for ten years.
Explore any commercial termination options in the contract, and if not, then consider a legal review to assess if the agreement is fair and reasonable.
Let’s talk about it from a commercial and then a legal point of view.
• Commercial: The agreement may have commercial terms that allow for termination. Some agreements do, and some don’t. You must review the agreement to assess whether that’s even an option. If the agreement has been executed correctly and it’s got the owners corporation’s stamp, it’s a formal agreement. It’s hard to get out of those agreements unless there’s a termination option.
• Legal: Is it a fair agreement? Get legal advice. Are there any breaches of Australian Consumer Law? Is it a fair and reasonable agreement? Does the committee have an appetite to potentially take the contract to court? It’s very sitespecific and contract-specific.
Raise your concerns with the embedded network operator and try to negotiate a better outcome. We have had some success renegotiating existing agreements.
Joseph Arena | Embedded Network Arena joseph@embeddednetworkarena.com.au
Benefits of your Strata Manager being an SCA Member
Choosing the right Strata Manager for your building is important. If your Strata Manager is a member of the Strata Community Association (SCA), you will have someone who is professional, has expert knowledge and is dedicated to making sure your property is managed well.
What sets an SCA member apart?
Expert Knowledge: SCA members undergo professional training and stay updated on the latest legislation governing strata communities.
Code of Conduct: SCA members must adhere to a Code of Conduct which entails obligations in regard to trasparency and ethical behaviour.
Continuous Learning: SCA members are required to participate in a minium of 6-12 hours per year of education and training to maintain their membership.
Great Resources: SCA members have access to a large range of tools and resources created by the SCA. These include guidelines on best practices and templates for different tasks.
Upcoming Training & Events
Committee Training for Strata ManagersSeptember Webinar
Date: 24 September 2024, 8:30am - 11:30am
Cost: Free
Location: Hophaus Bar & Restaurant Southbank
CPD: 1
This Strata Committee Training course focuses on good governance and how it helps strata committees achieve compliance with the strata legislation and meet expectations of the stakeholders. During this session we will highlight what is a legal obligation vs optional or suggestion.
Register : https://www.trybooking.com/CPJJC
Social Networking Event
Date: 26 September 2024, 6:30pm - 10:30pm
Cost: $70 members
$140 non-members
Location: Online via Zoom
CPD: 3
We are excited to invite you to our SCA (Vic) member social event as a thank you for your continued support and engagement. This informal evening of drinks and nibbles is our way of celebrating and showing our appreciation for our valued members.
Register : https://www.trybooking.com/CUMVZ
Symposium 2024
Dates: 9 & 10 October 2024
CPD: 3 per day
Venue: Marvel Stadium, Melbourne
The biggest event for the strata management industry in Victoria, offering learning and networking opportunities. Expect insightful keynote addresses and engaging panel discussions.
This event is a great opportunity for those in the strata industry to connect with peers, discuss industry trends, and gain new skills to navigate the evolving challenges in their field.
Register: https://www.trybooking.com/CSVTW
Conducting Performance Reviews: A Guide for Senior Strata Managers
Date: 23 October 2024, 10:00am - 11:00am
Cost: $70 members
$140 non-members
Location: Online via Zoom
CPD: 1
Master performance reviews with expert insights from industry leaders. Presenters: Lorraine Murray, State Manager (Victoria Body Corporate Services), Nathan Keating, Managing Director (Focus Building Risk and Compliance), Rebecca Ower, Regional HR Manager (Programmed).
Register : https://www.trybooking.com/CSVOG
After Hours Maintenance & Urgent Repairs in Strata Management
Date: 8 November 2024, 10:00am - 11:00am
Cost: $70 members
$140 non-members
Location: Online via Zoom
CPD: 1
Enhance your strata management skills with expert urgent repair solutions.
Presenter: Rob Corelli, General Manager (Tymaline Building Services).
Register : https://www.trybooking.com/CSVOQ
A100 November
Date: 12, 19, 26 November 2024, 9:30am - 3:30pm each day
Cost: $759 incl. GST
*Ticket enrolls attendee for all 3 days
Location: CHU Office, Level 21, 150 Lonsdale Street
CPD: 6
Join us for this immersive in-person experience, designed to provide you with a comprehensive overview of the strata industry over three engaging days.
Hurry, as there are only 22 spots available!
Register: https://www.trybooking.com/CSWRX
In-Person Roundtable Discussion: The OC Act
Date: 15 November 2024, 9:30am - 11:30am
Cost: $99 members
$198 non-members
Location: TBC
CPD: 2
Explore The OC Act complexities with industry experts. Panelists: Fabienne Loncar, Partner (Moray &Agnew), VJ Chhagan, General Manager (SOCM), Richard Eastwood, General Manager (Cambridge Management Services).
Register: https://www.trybooking.com/CSVPL
SCA (Vic) Awards Night 2024
Date: 29 November 2024
Time: 6:30pm – 11:30pm
Venue: San Remo Ballroom, Carlton North Nominations Open
Join us for the 2024 SCA (Vic) Strata Community Pillar Awards! Celebrate excellence with a Gala Dinner and Awards Presentation, recognising outstanding businesses and individuals in the strata industry.
Click Here to Nominate Now
Strata Assistant vs. Manager: Mastering the Balancing Act
Date: 12 December 2024, 11:00am - 12:00pm
Cost: $70 members
$140 non-members
Location: Online via Zoom
CPD: 1
Clarify Strata Assistant and Manager duties and transition between roles effectively.
Presenter: Emma Fairbrother, Senior Owners Corporation Manager (Tideways)
Register : https://www.trybooking.com/CSVQI
Committee Training for Committee MembersFREE TRAINING!
Date/Time: 25th September, 5:30pm-8:30pm
This course focuses on good governance and how it helps strata committees achieve compliance with strata legislation and meet expectations of the stakeholders. Whether you are taking up the responsibilities of a committee member for the first time or you are an experienced committee member, there is always something you can do to improve your knowledge and the governance of your strata community.
